Tourism overview : 2005-06
26 May 2006
Tourism in India has registered significant growth in recent years. In 1951, international tourist arrivals numbered only around 17,000, while the figure in 2005 was 3.91 million. The upward trend is expected to remain firm in the coming years.
Tourism is the third largest net earner of foreign exchange for the country recording earnings of $5731 million in 2005, a growth of 20.2 per cent over 2004. It is also one of the sectors that provides employment to the largest number of people. The first ever tourism satellite accounts for India compiled by NCAER for 2002-03 showed that tourism employed 38.8 million persons, directly and indirectly, which was 8.3 per cent of the total employment in the country and contributed 5.8 per cent of the GDP.
These figures are estimated to have increased to 41.85 million employed in 2003-04 with a GDP contribution of 5.9 per cent. Various studies have also shown that tourism generates the highest employment per unit of investment for the skilled, semi-skilled and unskilled. The World Travel and Tourism council (WTTC) has identified India as one of the foremost growth centres in the world in the coming decade.
While the growth in tourism has been impressive, India's share in total global tourism arrivals and earnings in quite insignificant. It is an accepted fact that India has tremendous potential for development of tourism. The diversity of India's natural and cultural richness provides the basis of a wide range of tourist products and experiences, which embrace business, leisure, culture, adventure, spirituality, eco-tourism and many other pursuits.
Apart from acknowledging the traditionally recognised advantages of developing tourism for the promotion of national integration, international understanding, earning of foreign exchange and vast employment generation, it can play a major role in furthering the socio-economic objectives of nation.
The ministry of tourism adopted a multi-pronged approach in order to achieve this growth. The measures include:
- Providing a congenial atmosphere for tourism development,
- Strengthening the tourism infrastructure and hospitality related services,
- Integrated development of identified destinations and circuits,
- Integrating elements of tourism,
- Emphasising on culture and clean civic life marketing of tourism products in a focused manner along with a branding exercise and
Positioning India as a high value destination in the new key markets and giving thrust on the human resource development activities have been the hallmarks of this strategy.
The focus of product development in the states also underwent a change with enhanced outlays for 'destination development' up to an amount of Rs5 crore and 'circuit development' up to an amount of Rs8 crore. A new proposal was moved to allocate up to Rs50 crore for individual destinations with high tourist footfalls in order to totally redesign the experience of the tourist through greater organisation and provision of civic facilities.
The important initiatives taken by the government to improve the flow of foreign tourists into the country thereby increasing the country's share in the world tourism included the following:
- Beginning of cruise tourism by an international shipping firm.
Direct approach to the consumers through electronic and print media through the "Incredible India" Campaign called "Colours of India". - Creation of world-class collaterals.
- Centralised electronic media campaign.
- An integrated campaign in South East Asia to promote Buddhist sites in India.
- Direct co-operative marketing with tour operators and wholesalers overseas.
- Greater focus in the emerging markets particularly in the region of China, South Korea, Japan and South East Asia.
- Participation in over 185 trade fairs and exhibitions all over the world.
- Optismising editorial PR and publicity.
- Use of internet and web marketing.
- Generating tourist publications.
- Re-enforcing hospitality programmes including grant of air passages to invite media personnel and tour operators on familiarisation tours to India to get first hand knowledge on various tourism products.
- Launching of road shows in key source markets of Europe, America, South East Asia and the west Asia.
- Focusing on growth of hotel infrastructure particularly budget hotels.
- Enhancing connectivity through augmentation of air capacity and improving road infrastructure to major tourist attractions.
- Introduction of the medical visa.
- Guidelines formulated for the classification of time-share Resorts, serviced apartments, guesthouses and home-stay accommodation.
Impressive strides were made in the field of human resource development. The Institute of Hotel Management continued to be the backbone of manpower training for hospitality industry in the country. The diploma courses offered by these Institute were upgraded to a degree course. The scheme of 'Capacity Building for Service Providers' also continued to be implemented for providing basic skills to unorganised sector service providers engaged in activities having direct interaction with the tourists. The first phase of the Atithi Devo Bhava programme was completed during which over 26,000 stakeholders in seven cities were trained.
The allocation of plan funds was raised from Rs500 crore in 2004-05 to Rs786 crore in 2005-06.
The new priorities and initiatives have been actuated with a sound backing of a national tourism policy. With the significant positive trends in the year 2005, the tourism industry is poised for a brighter 2006.